Stocks Pull Back, But Remain Within Striking Distance Of All-Time Highs

Plus 5 New Strong Buys for Today [Kevin Matras] Profit from the Pros By Kevin Matras Executive Vice President [Zacks Investment Research] Stocks Pull Back, But Remain Within Striking Distance Of All-Time Highs Image: Bigstock Stocks closed modestly lower yesterday. But the major indexes remain within striking distance of their all-time highs. Optimism over an eventual stimulus bill, coupled with an improving economy, continues to underpin stocks. Reports that Johnson & Johnson paused their vaccine trials due to an adverse reaction by one of their patients helped to soften yesterday's session. Although, Health and Human Services Secretary, Alex Azar, said that type of thing was "quite common." Later in the day we got another report that said Eli Lilly was pausing its enrollment in a late stage trial program after recommendations to do so from an independent data safety monitoring board. While these setbacks do not appear to be unusual based on the commentary surrounding these reports, they nevertheless will elongate the completion and approval process of these drugs. In other news, the NFIB National Small Business Optimism Index jumped to 104.0 vs. last month's 100.2 and views for 100.9. Analysts point out that the index has nearly regained its pre-pandemic level of 104.5 in February of this year. Pretty impressive, especially after plunging to a 7-year low in April. Today we'll get another look at the economy with the MBA Mortgage Applications report, the Produce Price Index-Final Demand report, and the Atlanta Fed Business Inflation Expectations report. News on the economy, as well as stimulus, and progress on COVID-19 therapeutics and vaccines, all have the potential to move the market. But it's clear that the economy, thus far, is experiencing an historical comeback. And with expectations for unprecedented growth for the remainder of the year, including estimates for Q3 GDP of more than 35% (the largest in history), and for the annual GDP growth rate in 2021 to come in at 5%, which would be the largest annual growth rate in 38 years, the economy seems to be on great footing. And that suggests a lot more upside to go for the markets. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Tesla is dead. Elon Musk is ruined.]( Electric cars are about to become a thing of the past. Thanks to a new discovery known as "Blue Gas" companies that produce electric cars (like Tesla) are about to go down in flames. "Blue Gas" is 100% emission-free, propels vehicles hundreds of miles, and allows cars to fully charge in minutes. Bloomberg projects that "Blue Gas" will "skyrocket 1,000 times over." But "Blue Gas" is slated to go global soon. 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